Book Image

Financial Modeling Using Quantum Computing

By : Anshul Saxena, Javier Mancilla, Iraitz Montalban, Christophe Pere
5 (1)
Book Image

Financial Modeling Using Quantum Computing

5 (1)
By: Anshul Saxena, Javier Mancilla, Iraitz Montalban, Christophe Pere

Overview of this book

Quantum computing has the potential to revolutionize the computing paradigm. By integrating quantum algorithms with artificial intelligence and machine learning, we can harness the power of qubits to deliver comprehensive and optimized solutions for intricate financial problems. This book offers step-by-step guidance on using various quantum algorithm frameworks within a Python environment, enabling you to tackle business challenges in finance. With the use of contrasting solutions from well-known Python libraries with quantum algorithms, you’ll discover the advantages of the quantum approach. Focusing on clarity, the authors expertly present complex quantum algorithms in a straightforward, yet comprehensive way. Throughout the book, you'll become adept at working with simple programs illustrating quantum computing principles. Gradually, you'll progress to more sophisticated programs and algorithms that harness the full power of quantum computing. By the end of this book, you’ll be able to design, implement and run your own quantum computing programs to turbocharge your financial modelling.
Table of Contents (16 chapters)
1
Part 1: Basic Applications of Quantum Computing in Finance
5
Part 2: Advanced Applications of Quantum Computing in Finance
10
Part 3: Upcoming Quantum Scenario

Portfolio Management

According to the Global Industry Classification Standard (GICS), the global asset management industry’s total assets under management (AUM) value at the end of 2020 was approximately $91.7 trillion, managed across 84,000 firms. This consists of the AUM managed by investment firms, pension funds, insurance companies, and other international financial institutions. Frequently, asset managers utilize portfolio management techniques to manage these assets. Investopedia defines portfolio management as follows:

Portfolio management is the art and science of selecting and supervising a portfolio to achieve a specific investment goal for the investor’s benefit.

This chapter will explore the art of portfolio management using machine learning techniques and quantum algorithms. It is divided into five sections:

  • Financial portfolio management
  • Financial portfolio diversification
  • Financial portfolio simulation
  • Portfolio management using...